Is Risk Picking Up?
Just a few notes today.
The market continues to act very well off its recent lows…BUT…I need to tell
you a few things that make me believe risk picks up here. Notice I did not say a
trashing or even a big pullback. I am just seeing a few things that give me
pause.
FINANCIALS are starting to break support. FINANCIALS are important. Please
take a look at these charts.
-
The most speculative, the crappiest, the lowest-priced vermin are coming off
their lows. I am finding 30 cent stocks tripling. Speculation only four weeks off
the lows…yikes. -
Breakouts…still for the most part failing. There remains a lack of
leadership. -
The best stocks are the worst stocks from the past 30 months. -
Bullish advisors are up to 49% after being at 28% at the lows just
two weeks
ago. This wrong-way crowd may call a top again. Think about it. They became
the most bearish at the lows and have turned bullish AFTER a move.
This all said, there is now support on the S&P at 901. I wouldn’t sweat it
unless that number gets penetrated. After that, you have a short-term base
between 874 and 901.
On the Nasdaq, no worries here just yet. The only problem is that
TECHS
are overextended here. Some names have come straight up and are in dire need of
a pullback. This would be a normal occurrence at this juncture. Support lies at
1380.
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